While the last two years are banner years for the supply of new executive condominiums (ECs), for this year it is predicted that there will be a slight drop in EC projects to be launched in the market. This is due to the 15-month rule announced on January 2013, during the seventh round of property cooling measures. Under this rule, developers are only allowed to launch EC projects 15 months after the award of the site or after the physical completion of foundation works, whichever is earlier.

In 2013 seven projects were rolled out, and eight in the preceding year. Table 1 presents all the projects launched since the inception of the EC scheme in 1994.

Table 1: EC Projects

Project Name

Location

Developer

Date of Launch

Year of Completion

Median Price at Launch

($ psf)

Price Range at Launch

($ psf)

Chestervale

Bukit Panjang

NIL

NIL

1999

434

314-473

Eastvale

Pasir Ris

NIL

NIL

1999

405

341-429

Pinevale

Tampines

NIL

NIL

1999

459

330-529

Simei Green Condominium

Tampines

NIL

NIL

1999

422

301-472

Westmere

Jurong East

NIL

NIL

1999

397

370-443

Windermere

Choa Chu Kang

NIL

NIL

1999

451

329-498

Northoaks

Woodlands

NIL

NIL

2000

397

289-461

Summerdale

Jurong West

NIL

NIL

2000

372

284-451

The Floravale

Jurong West

NIL

NIL

2000

371

247-419

The Florida

Hougang

NIL

NIL

2000

436

351-521

The Rivervale

Sengkang

NIL

NIL

2000

449

287-556

Woodsvale

Woodlands

NIL

NIL

2000

380

290-424

Yew Mei Green

Choa Chu Kang

NIL

NIL

2000

429

308-844

Bishan Loft

Bishan

NIL

NIL

2003

418.5

379-491

Lilydale

Yishun

NIL

NIL

2003

367.5

239-420

The Dew

Bukit Batok

NIL

NIL

2003

387.5

288-430

The Eden At Tampines

Tampines

NIL

NIL

2003

406

323-461

Nuovo

Ang Mo Kio

NIL

NIL

2004

402

307-512

Park Green

Sengkang

NIL

NIL

2004

368

268-416

The Esparis

Pasir Ris

NIL

NIL

2005

386

316-403

Whitewater

Pasir Ris

NIL

NIL

2005

373

313-423

The Quintet

Choa Chu Kang

NIL

NIL

2006

378

242-410

La Casa

Woodlands

NIL

NIL

2008

393

340-534

1 Canberra

Yishun

NIL

NIL

Uncompleted

715

550-804

Esparina
Residences

Compassvale
Bow

FCL
Compassvale
Pte. Ltd.

Oct-10

Uncompleted

761

503 -811

The Canopy

Yishun
Avenue 11

MCC Land
(Singapore)
Pte Ltd

Oct-10

Uncompleted

657

541 -708

Prive Punggol Field

Punggol Field
/ Punggol
Road

Punggol Field
EC Pte. Ltd.

Dec-10

Uncompleted

704

508 -738

Austville
Residences

Sengkang
East Avenue

MaxLee
Development
Pte Ltd

Jan-11

Uncompleted

719

599- 772

Belysa

Pasir Ris
Drive 1

Pasir Ris EC
Pte Ltd

May-11

Uncompleted

691

501- 732

Blossom
Residences

Segar Road

Grand Isle
Holdings Pte
Ltd

Jul-11

Uncompleted

702

536 -793

Riverparc
Residence

Punggol Drive
/ Punggol
East

Qingjian
Realty
(Punggol) Pte
Ltd

Jul-11

Uncompleted

694

489-757

Arc At
Tampines

Tampines
Avenue 8

Hoi Hup
Sunway
Tampines Pte
Ltd

Sep-11

Uncompleted

734

540-865

The Rainforest

Choa Chu
Kang Avenue
3

Camborne
Developments
Pte Ltd

Jan-12

Uncompleted

753

594- 831

The Tampines
Trilliant

Tampines
Central 7

Sim Lian
(Tampines
EC) Pte Ltd

Feb-12

Uncompleted

803

551- 886

Twin Waterfalls

Punggol Walk

Punggol
Residences
Pte Ltd

Feb-12

Uncompleted

727

542 -777

Watercolours

Pasir Ris Link

HUGE
Development
Pte Ltd

Jun-12

Uncompleted

735

577 -784

Heron Bay

Upper
Serangoon
View

Serangoon
EC Pte Ltd

Oct-12

Uncompleted

738

597 -809

Waterbay

Edgefield
Plains

Qingjian
Realty
(Edgefield Plains) Pte
Ltd

Oct-12

Uncompleted

752

538 -872

Citylife@Tampi
nes

Tampines
Central 7

Tampines EC
Pte Ltd

Dec-12

Uncompleted

812

470 -930

The Topiary

Fernvale Lane

Peak Living
Pte Ltd

Dec-12

Uncompleted

737

600-809

Twin Fountains

Woodlands
Avenue 6

FCL Admiralty
Pte Ltd

May-13

Uncompleted

741

665 -813

Forestville

Woodlands
Drive 16

Hao Yuan
Investment
Pte Ltd

Jun-13

Uncompleted

730

565 -816

Ecopolitan

Punggol Walk

Qingjian
Realty
(Punggol
Way) Pte Ltd

Aug-13

Uncompleted

793

677 -871

Lush Acres

Fernvale
Close

Verspring
Properties Pte
Ltd

Aug-13

Uncompleted

790

673- 880

Sea Horizon

Pasir Ris Rise

Hao Yuan
Development
Pte Ltd

Sep-13

Uncompleted

818

713 -933

Skypark
Residences

Sembawang
Crescent

Oasis
Development
Pte Ltd

Nov-13

Uncompleted

800

738 -896

Waterwoods

Punggol Field
Walk

Coral Edge
Development
Pte. Ltd.

Nov-13

Uncompleted

801

743- 863

Source: URA

Last year, only five EC sites were sold, with the earliest in May. Because of the 15-month rule, the earliest an EC will be ready for sale will be somewhere in August this year. Based on the tender closing date, we estimate the earliest possible sale launch date, and we found that as many as five EC projects can be ready for launch in 2014, with all in the third or fourth quarter of the year.

Demand for these EC projects will be strong for the following two reasons:

There has been a time-lag of about eight months since the last EC launch in November 2013, demand will have built up.

These are the last remaining EC developments exempted from the re-sale levy that second-timers have to pay. On 9 Dec 2013, a new rule, affecting only EC sites launched for sale from 9 Dec onwards, was rolled out that mandates second-timer applicants who buy EC units directly from property developers to pay a re-sale levy. Given that from 4Q2010 to 4Q2013, 55 per cent of buyers are second-timers according to National Development Minister Khaw Boon Wan in his blog, Housing Matters, the large proportion of interested second-timers will be keen to secure an EC unit that is exempted from the re-sale levy. Do take note that second-timers encompass those who have owned/sold new HDB flats, resale HDB flats purchased under the CPF Housing Grant Scheme, EC or DBSS bought directly from the developer; or had enjoyed some forms of housing subsidy.

However an offsetting factor is the 30% MSR criteria that buyers have to meet when taking a mortgage for the EC. This regulation was also introduced on 9 Dec 2013, in which the monthly mortgage repayment must not exceed 30 per cent of the borrower’s gross income before a mortgage can be granted.

But no new EC project has been rolled out since the introduction of this mortgage rule. Therefore, its effect is still untested.

EC projects built on site purchased from this year onward will likely feel the effect of the MSR ruling and re-sale levy.

To all HDB upgraders out there who can afford it, purchase a new EC unit that hits the market this year to spare your pockets from the re-sale levy! Start planning early, speak to an iCompareLoan mortgage expert today to help you compare home loans Singapore!